AKS Airport Project:
The Inside Story
 
- Air Comdr. Idongesit Nkanga (rtd.)

 In 2005, Akwa Ibom State embarked on a first class international and Category II airport project in Uyo, including a Maintenance, Repair and Overhaul (MRO) facility for Nigerian, regional, and international aircraft, and the first of its kind in West Africa. This project was envisioned to provide significant employment opportunities for state residents, offer them opportunity to fly in and out of the state with the need to first travel to Port Harcourt or Calabar. Subsequently, a feasibility study commissioned by the state confirmed the economic viability of the project. The services of DynCorp Int'l LLC, a US-based company, was therefore retained as the prime contractor for the construction and completion of the Category II Airport. DynCorp was selected in large part because of its assurances that it had the expertise to carry out the Project and its experience in performing A, B, C, and D checks for medium-sized and large aircraft, at the completion which it would invest in and ultimately serve as the operator of the MRO facility. However, construction of the project commenced in late 2005 with DynCorp hiring Nigerian-based sub-contractors to perform the civil works. Now, in late June, 2008, DynCorp has abruptly abandoned the project and subsequently informed the state of its contract termination of the airport and MRO facility. These and other facts were contained in a statement issued by Engr. Etido Inyang, Secretary, Airport Implementation Committee. What is the state government's position on the issue? The Chairman, Airport Implementation Committee, Air Comdr Idongesit Nkanga (rtd.) in an exclusive briefing with Paulinus Nnah proffered an insight into the story. Read on:

Please, Sir, could you tell us the Terms of Reference for the Committee?
I think he (the Committee Secretary) can give you that…. Ah let me take you back…, initially in 2006 the former administration called me in at that time as a technical adviser. And shortly after that I was the then technical consultant to them. I was then concerned with the quality of work that was done. We were not part of the business part of it. When the idea of building an international airport came, I was told that we'll take care of maintenance of aircraft up to 747…, up to C & D Checks, 'cause that's the crux of it…. When that idea was conceived it was after careful and serious Feasibility Study, and it was seen to be very viable within this region. So the need for that airport for what it was going to do, there's no doubt about that at all. Then, if you admit something like that, the first thing that will cross your mind is to identify who will operate it, because you can't just build a hanger with identifying the operator. It was even designated a “national hanger”. That's how much interest the nation showed…. You cannot just build and you wouldn't have somebody to operate, 'cause anyone you bring will want to know the name of things to operate. Somehow, when it was put together at that time I wasn't part of it then.

The initial error
This company, DynCorp, was everything. If we had an airport of that status, all they would have done would have been just to come and concentrate on the MRO, 'cause that was the basis. But since there was no MRO you now had to build an airport and the state now asked them to go about and supervise the whole of the airport. And I think the first mistake there was that they had never in their life built an airport, or got involved building an airport.

What should have been done
But then, there are no companies, really, that sits down and says, all it does would be (to) build an airport in totality, of this magnitude. You will always find that as you are building an airport, there is a main area that you are, you know, versed in. Abuja Airport was built by Julius Berger, but their own was more of civil works. Because you are going to see the area of civil works. They are the ones that would build the runway, maybe taxi ways, build the terminal building, and that's about it. But you still have to take experts that will be working on the FA lighting, putting on the navigational aids and other things. So usually if you get somebody that comes in and says he's an expert, its civil works. You could still have to get other people that…. Lagos (airport) was done by Strabag, and you know their own is civil works… straight, but they have other areas.

The ruse
So it was not…. The first mistake was that DynCorp is not in any of these. So invariably it was going to hire every other person that does every work there. Of course that was also shown in the Design Build Agreement (DBA). So whatever was done, the cost of material, the cost of labour, they were going to take professional fee of 13% out of that. So they were just a contractor. Government did that, you know, so that they can keep them for the operations of the hanger. So it was okay as of that time. So they did not really bring any expertise. All the other sub-contractors were hired by them…. Because if you brought this other person that was a contractor, you were dealing with him directly, you wouldn't have to come and pay 13% over that. Then, in the DBA, because they were afraid of incurring waste…, they did not want any waste, they now said, we had to be paying three months in advance so that at the end of it they can use that to pay the sub-contractors. It was risk-free kind of…. It was a difficult thing to accept that, so we were still hanging on to this even when the new administration came, because of the MRO, because of the hanger. But then they now came back and told us that they were not going to be part of the MRO…, the hanger, unless we'll give them our cost plus. Cost plus means… we buy all the materials, we will hire somebody to run the MRO and we pay them in percentage. And I was there when we met with Obasanjo at that time and they said they were going to invest not less than $5.7m in the equipment. They went back on that also. So as that point there was no need again. 'Cause any other person… could go directly to an MRO operator…. So again we were still hoping that they'll be able to finish Phase I.

1½ years lagging in completion
Then we realized that this airport was supposed to have been completed by January last year. So we are eighteen months behind schedule.

Double cost
The cost of it has gone more than 100%, and the thing was still open-ended. Which meant we left it for another…. At this point they told us that, well if we pay this much by 2012. Then we said, don't you have any other thing to do? And so, it was a way of just…, you know, we were not sure again whether we could finish this airport at a reasonable cost.

Need for Committee
So in January this year the Governor in his discomfort, now set up a committee and said please let people that understand what is going wrong… advise…. Of course in the area, you know, in the beginning, people that really had understanding of what was supposed to have been done were not there. So DynCorp was the contractor, they were the accounting officers, they were everything. So whatever they said they got it. And that was not practicable. So at this time when the Governor put things in place, they were beginning to feel uncomfortable, 'cause the money was not going to come the way they wanted it to. And of course in the earlier part it was mostly Feasibility Studies and, you know, the work then was not serious.

Serious business
But at this point, when this administration came, work started getting serious. So we've seen quality of work and say this one is not right, this one is not right. And of course once that happens liability has to be there, you must talk about liability. And in the course of that, of course, they were feeling uncomfortable. We had instances of things like that, that we say this thing is not right, there is a defect here, there must be limitation, and who takes the liabilities. We had instances like that and you find out that they were not very comfortable. At least these were the reasons why they decided to pack out.

DynCorp's ostensible defense
Of course, if you talk with them (DynCorp) they will tell you why they packed out. They have not said so (actually). They would probably tell you that: “Oh payment was not coming as it should have”. But again even if they present that paper, the DBA, the paper that…, the agreement we had. Then if at any point you notice a defect, then you can actually defer payment until that defect is corrected. So if I will be arguing (in) that kind of situation and say well, let us clear this and they were not ready, they just wanted money to continue coming, and of course that's too bad.

False identity
They are the men you will find out that generally they were not exactly what they probably said they were. I have to comment in the capacity as aircraft repairer. Whatever the reason was for taking them, I don't think they were the most qualified. Because to start with, I have had meetings with them, I have never seen where their company is. We had meetings in the United States, we would go and ask them: “Where's your company?”, over there. And at a point, they said that they maintain the (US) President's aircraft, of America of… airforce I. And I said, “that does not mean anything”, because the (US) President's fleet might have so many small tiny aircrafts. But if you are maintaining airforce I which is a 747 I would say you can maintain a 747 up to C & E checks. I was in charge of the Presidential Fleet here in Nigeria. We had at that time…, we had up to about 15 aircrafts. Nobody would know we had that much. Today probably we had up to about 16/17. But unless you maintain the highest one there, then you are not…, you know, it's really nothing…. Well they could fool us with that, and then where is their facility, then they said it's at Angus Airforce Base. Angus Airforce Base is where the (US) President's aircraft is, and I have landed there about five to six times myself, I have never seen that company. It must have been too small for me not to notice (laughs). But at that time, you know, being an air crew, if you land in a place the first thing is to look for those that can help you for the maintenance and administration and all that. So if I couldn't see them, I couldn't use them so I don't understand where they were. Outside that, where is their facility?

What next?
So those things started being a bit of confusion. …They were just contractors. But as it is now, what is important for us is that the airport must be completed as scheduled. At the point they left, every sub-contractor was in place. So that's important, because when you say DynCorp left, only about four of them left. The project manager that was not an engineer, the contract manager, the account personnel and one other fellow. All other people were still on ground. You know Gitto is building the runway, they are still doing it. Marlom is there, Tidem is there, Nidaco is there…. We have consultants on ground. Even the site engineer that was working for DynCorp…, he didn't go with them. And we realize that sometimes when this sub-contractors, because they have agreement with somebody, there was nothing between the government and the sub-contractors. So if you have problem with them, they'll tell the sub-contractors not to work. And they will be delaying because the long they stay, the more money that they make.

DynCorp's stock-in-trade
Just three days ago I was shocked, somebody came, he worked with these (DynCorp) people, he's a British and he worked with DynCorp in Iraq. He said up till now they've not even paid his money. He told us exactly the story of what DynCorp has been doing.… So they are not new. They're on the network. They are not new in this business. And I want to tell you if anybody…, that is why I've taken time to explain it because of your media house. If somebody comes to tell you that, oh because government wanted to do this…, this governor is too kind. I would not have…, I would have thrown them long time ago. But I think that…, because he didn't want maybe…, you know, he just wanted to complete. But if somebody wants to tell you that, oh maybe they wanted some money, tell him that if this Governor or this government wanted to make money out of that airport, DynCorp is the right candidate, because today if you go to the website of Washington Post, you see that they have done worse than this. They are being investigated today by the State Department, United States. They have refunded $14 million, they have sighted about $2.5 million worth of vehicles scattered because of the contracts they had and they will return some. They are still investigating. And they were seen to be people that were building Olympic-size swimming pools for VIPs. They were not just the best candidates.… But if the Governor just wanted to make money, I think they were the right candidates.

I wonder if the government did not seek the advice from people like you before contracting the company. Because being an expert in the aviation industry you must have had ideas of each company that could have handled a project of that magnitude.
Well, they did not call my advice. And I don't know of any aviation person that they sight him advice. I wouldn't know.… Information available to me doesn't show that they were really.... They signed an agreement that the Ministry of Justice was not part of.… And even the commissioner then, Commissioner for Special Duties, 'cause at last I worked with him for sometime, said he didn't sign, whether it was fixed to him. But the important thing was that there was a business part of it and there was the technical part of it. Those of in that even came later were not part of it. I could see the anxiety of government then. You can image building such a project without a consultant.

Sir, do you foresee any case of indictment on the part of the previous administration?
Well, I don't know, government has set up a panel of enquiry. The Governor has said that. It is when that comes out that we will know.

What was the tune of the contract sum?
It was $125,000.00 without contingent of maybe $133,000.00. But that has been thrown out of the window….

Thank you very much, Sir.
You are welcome.